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OPERATING LEASE RIGHT-OF-USE (“ROU”) ASSETS AND OPERATING LEASE LIABILITIES | 3 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2025 | Dec. 31, 2024
Operating Lease Right-of-use Rou Assets And Operating Lease Liabilities |  |
OPERATING LEASE RIGHT-OF-USE (“ROU”) ASSETS AND OPERATING LEASE LIABILITIES | NOTE 12 – OPERATING LEASE RIGHT-OF-USE (“ROU”) ASSETS AND OPERATING LEASE LIABILITIES On July 13, 2022, and effective on August 1, 2022, the Company entered into a 36-month lease agreement for the lease of office space under a non-cancelable operating lease through July 31, 2025. During the term of lease, the Company shall pay base rent of $2,704 from August 1, 2022 to July 1, 2023, with escalation of the base rent of 4% per year thereafter on the anniversary date of the lease. The Company is to pay the base rental rate plus common area assessments and sales tax for the lease payments. In connection with this lease, on August 1, 2022, the Company incurred right of use assets and lease liabilities of $92,509. In July 2021, Safe-Pro USA entered into a 62-month lease agreement for the lease of office, manufacturing and warehouse space under a non-cancelable operating lease through September 30, 2026. During the term of lease, the Company shall pay base rent of $3,043 from August 1, 2021 to September 30, 2022, with escalation of the base rent of 4% per year thereafter on the anniversary date of the lease. The Company is to pay the base rental rate plus common area assessments and sales tax for the lease payments. Common area assessments and sales tax for the lease payments are expensed monthly as incurred. In connection with the Company’s acquisition of Safe-Pro USA, on June 7, 2022, the Company acquired right of use assets and assumed lease liabilities of $154,265 and $156,963, respectively. In April 2024, Airborne Response entered into a 39-month lease agreement for the lease of a vehicle under a non-cancelable operating lease through July 2027. During the term of lease, the Company shall pay base rent of $296 from April 2024 to July 2027. In connection with the signing of the vehicle lease, the Company’s recorded a right of use assets and lease liabilities of $19,583 and $9,835, respectively. In adopting ASC Topic 842, Leases (Topic 842) on January 1, 2022 the Company had elected the ‘package of practical expedients, which permitted it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs (see Note 2). In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 months or less. Upon signing of new leases for property and equipment, the Company analyzed the new leases and determined it is required to record a lease liability and a right of use asset on its consolidated balance sheets, at fair value. During the three months ended March 31, 2025, in connection with its operating property leases, the Company recorded rent expense of $23,272, and for the three months ended March 31, 2024, the company recorded rent expense of $22,710, which is expensed during the period and included in general and administrative expenses on the accompanying unaudited consolidated statements of operations. The significant assumption used to determine the present value of the lease liabilities on August 1, 2022 and June 7, 2022, and April 2024 was a discount rate ranging from 3.75%, 6.0% and 7.5%, which was based on the Safe-Pro USA’s, the Company’s and Airborne Response estimated average incremental borrowing rate, respectively. On March 31, 2025 and December 31, 2024, right-of-use asset (“ROU”) is summarized as follows: SCHEDULE OF RIGHT OF USE ASSET
|  | March 31, 2025 |  |  | December 31, 2024 |
Office lease right of use assets |  | $ | 277,514 |  |  | $ | 277,514 |
Auto lease right of use asset |  |  | 19,583 |  |  |  | 19,583 |
Less: accumulated amortization |  |  | (214,346 | ) |  |  | (195,476 | )
Balance of ROU assets |  | $ | 82,751 |  |  | $ | 101,621 |
SAFE PRO GROUP INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 (unaudited)
Other information: |  | March 31, 2025 |  |  | December 31, 2024 |
Weighted average remaining lease term – operating leases |  |  | 1.32 years |  |  |  | 1.57 years |
Weighted average discount rate – operating leases |  |  | 4.60 | % |  |  | 4.60 | %
On March 31, 2025 and December 31, 2024, operating lease liabilities related to the ROU assets are summarized as follows: SCHEDULE OF OPERATING LEASE LIABILITY TO ROU ASSET
|  | March 31, 2025 |  |  | December 31, 2024 |
Lease liabilities related to office lease right of use assets |  | $ | 72,962 |  |  | $ | 91,113 |
Lease liabilities related to auto lease right of use asset |  |  | 6,842 |  |  |  | 7,595 |
Less: current portion of lease liabilities |  |  | (54,599 | ) |  |  | (63,115 | )
Lease liabilities – long-term |  | $ | 25,205 |  |  | $ | 35,592 |
On March 31, 2025, future minimum base lease payments due under non-cancelable operating leases are as follows: SCHEDULE OF LEASE PAYMENTS DUE UNDER NON-CANCELABLE OPERATING LEASES
Twelve months ended March 31, |  | Amount |
2025 |  | $ | 45,582 |
2026 |  |  | 35,592 |
2027 |  |  | 1,183 |
Total minimum non-cancellable operating lease payments |  |  | 82,358 |
Less: discount to fair value |  |  | (2,554 | )
Total lease liabilities on March 31, 2025 |  | $ | 79,804 |
| NOTE 14 – OPERATING LEASE RIGHT-OF-USE (“ROU”) ASSETS AND OPERATING LEASE LIABILITIES On August 1, 2022, the Company entered into a 36-month lease agreement for the lease of office space under a non-cancellable operating lease through July 31, 2025. During the term of lease, the Company shall pay base rent of $2,704 from August 1, 2022 to July 1, 2023, with escalation of the base rent of 4% per year thereafter on the anniversary date of the lease. The Company is to pay the base rental rate plus common area assessments and sales tax for the lease payments. In connection with this lease, on August 1, 2022, the Company incurred the right of use assets and lease liabilities of $92,509. In July 2021, Safe-Pro USA entered into a 62-month lease agreement for the lease of office, manufacturing and warehouse space under a non-cancellable operating lease through September 30, 2026. During the term of lease, the Company shall pay base rent of $3,043 from August 1, 2021 to September 30, 2022, with escalation of the base rent of 4% per year thereafter on the anniversary date of the lease. The Company is to pay the base rental rate plus common area assessments and sales tax for the lease payments. Common area assessments and sales tax for the lease payments are expensed monthly as incurred. In connection with the Company’s acquisition of Safe-Pro USA, on June 7, 2022, the Company acquired the right of use assets and assumed lease liabilities of $154,265 and $156,963, respectively. In April 2024, Airborne Response entered into a 39-month lease agreement for the lease of a vehicle under a non-cancellable operating lease through July 2027. During the term of lease, the Company shall pay monthly payments of $296 from April 2024 to July 2027. In connection with the signing of the vehicle lease, the Company’s recorded a right of use assets and lease liabilities of $19,583 and $9,835, respectively. In adopting ASC Topic 842, Leases (Topic 842) on January 1, 2022 the Company had elected the ‘package of practical expedients, which permitted it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs (see Note 2). In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 months or less. Upon signing new leases for property and equipment, the Company analyzed the new leases and determined it is required to record a lease liability and the right of use asset on its consolidated balance sheets, at fair value. During the year ended December 31, 2024 and 2023, in connection with its property operating leases, the Company recorded rent expense of $91,513 and $89,488, respectively, which is included in general and administrative expenses on the accompanying consolidated statements of operations. The significant assumption used to determine the present value of the lease liabilities on August 1, 2022 and June 7, 2022, and April 2024 was a discount rate ranging from 3.75%, 6.0% and 7.5%, which was based on the Safe-Pro USA’s, the Company’s and Airborne Response estimated average incremental borrowing rate, respectively. SAFE PRO GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 On December 31, 2024 and 2023, right-of-use asset (“ROU”) is summarized as follows: SCHEDULE OF RIGHT OF USE ASSET
|  | December 31, 2024 |  |  | December 31, 2023 |
Office lease right of use assets |  | $ | 277,514 |  |  | $ | 246,774 |
Auto lease right of use asset |  |  | 19,583 |  |  |  | - |
Less: accumulated amortization |  |  | (195,476 | ) |  |  | (93,370 | )
Balance of ROU assets |  | $ | 101,621 |  |  | $ | 153,404 |
On December 31, 2024 and 2023, operating lease liabilities related to the ROU assets are summarized as follows: SCHEDULE OF OPERATING LEASE LIABILITY TO ROU ASSET
|  | December 31, 2024 |  |  | December 31, 2023 |
Lease liabilities related to office lease right of use assets |  | $ | 91,113 |  |  | $ | 159,634 |
Lease liabilities related to auto lease right of use asset |  |  | 7,595 |  |  |  | - |
Less: current portion of lease liabilities |  |  | (63,115 | ) |  |  | (68,522 | )
Lease liabilities – long-term |  | $ | 35,592 |  |  | $ | 91,112 |
Other information: |  | December 31, 2024 |  |  | December 31, 2023 |
Weighted average remaining lease term – operating leases |  |  | 1.57 years |  |  |  | 2.37 years |
Weighted average discount rate – operating leases |  |  | 4.60 | % |  |  | 4.50 | %
On December 31, 2024, future minimum base lease payments due under non-cancelable operating leases are as follows: SCHEDULE OF LEASE PAYMENTS DUE UNDER NON-CANCELABLE OPERATING LEASES
Year ending December 31, |  | Amount |
2025 |  | $ | 63,116 |
2026 |  |  | 35,097 |
2027 |  |  | 1,183 |
Total minimum non-cancellable operating lease payments |  |  | 99,396 |
Less: discount to fair value |  |  | (688 | )
Total lease liabilities on December 31, 2024 |  | $ | 98,708 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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